diversification

noun

1
: the act or process of diversifying something or of becoming diversified : an increase in the variety or diversity of something
Between the appearance of complex cells 2.1 billion to 1.6 billion years ago and the explosive diversification of multicellular animals some 800 million years ago, not much happens in the fossil record.—Carolyn Gramling
2
a
: the act or practice of spreading investments among a variety of securities or classes of securities
I've emphasized bond mutual funds because they're so useful for investors of average means. You get diversification (because the fund owns many types of bonds) and liquidity (you can cash out, at the market price, whenever you want).—Jane Bryant Quinn
b
: the act or policy of increasing the variety of a company's products
And it envisions a diversification into products such as clothing and electronics, which Nakasone hopes will attract more customers outside the busy holiday season.—Karl Taro Greenfeld

Examples of diversification in a Sentence

Recent Examples on the Web
Examples are automatically compiled from online sources to show current usage. Read More Opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback.
Such diversification is important because even a technologically advanced military can face operational difficulties if essential components become unavailable at a critical moment, according to reports. — Prabhat Ranjan Mishra, Interesting Engineering, 30 Oct. 2026 The textile industry has been increasingly investing in Vietnam amid diversification pushes out from China. — Sarah Jones, Footwear News, 28 Oct. 2026 The study’s authors stopped short of claiming the coinciding diversification of Cretaceous plants and oviraptorosaurs (the larger dinosaur group encompassing caenagnathidae) are directly related. — Andrew Paul, Popular Science, 28 Oct. 2026 But some aggressive retail investors want the diversification of an ETF with the gains of a day trader. — Jim Edwards, Fortune, 26 Oct. 2026 See All Example Sentences for diversification

Word History

Etymology

borrowed from Middle French & Medieval Latin; Middle French diversificacion, diversification, borrowed from Medieval Latin dīversificātiōn-, dīversificātiō "differentiation, variation," from dīversificāre "to differentiate, diversify" + Latin -tiōn- -tiō, suffix of verbal action

First Known Use

1603, in the meaning defined at sense 1

Time Traveler
The first known use of diversification was in 1603

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Cite this Entry

“Diversification.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/diversification. Accessed 1 Nov. 2026.

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